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Case
| HBS Case Collection
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2003
(Revised from original 1993 version)
Texas High-Speed Rail Corporation
by
Timothy A. Luehrman
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Abstract
The finance director of the Texas High-Speed Rail Corp. (THSRC) is considering modifications to the financing program designed to support the development, construction, and operations of THSRC's planned high-speed rail system. The current plan achieves many objectives, including raising $6.5 billion from private sources, but a few problems remain to be addressed. These include temporary overfunding, unutilized tax losses, and certain important contingencies. Designed to highlight the shortcomings of simple valuation tools in a static analysis when applied to a dynamic project. The class discussion should isolate specific analytical issues, which may then be addressed in subsequent class sessions.
Keywords: Private Sector;
Financial Strategy;
Financing and Loans;
Taxation;
Management Analysis, Tools, and Techniques;
Strategic Planning;
Valuation;
Rail Industry;
Texas;